The internet has led to improvements in the way we do just about anything, with each internet innovation more impressive than the last. We have the internet to thank for instant communication and collaboration across the globe, the rapid spread and wide access of information on any subject known to man, and viral cat videos. The internet also made way for electronic funds transfers (EFTs), which provide a means for making and requesting faster and more secure payments.
The internet has massively impacted the way the world works; however, these technological advancements have also created more complex systems, making understanding and comprehension of their use daunting. It’s natural to mistrust that which we don’t understand but tearing through the shroud of mystery around how things work allows for business owners to make more informed decisions when considering alternative solutions. A basic understanding of how EFT payments work reveals a system that provides a secure, inexpensive, and fast method for transferring money.
What is an EFT and How Does It Work?
The elevator pitch for electronic funds transfers is that EFTs are computerized financial transactions between two bank accounts. Examples of EFTs are wire transfers, direct deposits, ATM withdrawals, and online payment services. Just about every bill you pay or product you purchase is conducted through an EFT transaction unless you are sending a physical check or using cash. EFT transactions are processed through automated clearing houses (ACHs), which are secure transfer systems connecting financial institutions to one another.
Secure Transactions with EFT
Speaking of security, payment information in EFTs is encrypted with 128-bit SSL and sent through secure communication channels. Secure Sockets Layer (SSL) encryption is the go-to technology for all things related to internet traffic security. Basically, each time a connection needs to be encrypted, two “keys” are created (one public and one private) that are used to unscramble the information that gets intentionally scrambled during the encryption process. If anyone tries to access or intercept this data, they only receive useless gibberish.
With 128-bit SSL encryption, an absurdly unfathomable number of scrambled possibilities occur. In fact, even using modern supercomputers to attempt to “brute force” the solution (guess by trying every combination) would take 1 billion billion (no, that’s not a typo) years, which is longer than the universe has even existed. In short, 128-bit SSL is virtually uncrackable, meaning you can rest assured your information won’t be intercepted during EFT transactions.
Benefits of EFT Compared to Traditional Methods
EFT fits perfectly into the modern and rapidly changing world of businesses today. Waiting for checks or cash to arrive through the mail just doesn’t cut it when time is constantly of the essence. EFTs are faster and more secure than traditional mail. Online transactions can be closely monitored at all times, so you know exactly what’s happening with your money. EFT has rapidly gained traction with companies and customers alike thanks to its convenience and security. EFTs also allow you to set up regular payments and mass transactions with ease.
The move to a paperless world is supported by EFT transactions. EFT processing is cheaper than credit card processing, meaning organizations can save time and money when using EFT services like the ones SeamlessChex provides to its customers. Visit SeamlessChex online to learn more about how your business can save time, money, and heartache by taking advantage of the power and convenience of EFT transactions.